China has recently proved to be the fastest-growing economy in the world. The annual GDP growth in China totals 9.4% which is the highest figure around the world, while the average annual amount of foreign trade capital of the country amounted to $20.6 billion in 2005 (Bijian, 2005, p. 18). Accompanied by the immense population growth rates that make China the most populated country in the world with 1.3 billion citizens, China’s economy is doomed to succeed.
In the modern age of information and technology, the sphere of telecommunication is viewed as the best area to start the development of the economy in China. The local telecommunications sphere is state-run and monopolized by the three major companies that include China Mobile, China Telecom and China Unicom (Chen, 2002, p. 49). Over 680 million people in China constitute the current and potential customer base for the further developing telecommunications industry. Conducting strict governmental control over the telecommunications sphere, China encourages cooperation with foreign telecommunications partners.
The recent research works and surveys by Chen (2002), Bijian (2005), etc. report the increasing demand for 3G technology in China. This kind of connection increases the quality of communication and improves people’s lives through easy operations and acceptable prices. Thus, China considers “TD-SCDMA technology a vital 3G solution with a great opportunity to succeed in the world” (Chen, 2002, p. 52) and develops this technology in its domestic market.
Moreover, understanding the global strategic importance of telecommunication and technological modernization, the Chinese Government pays lots of attention to the development of domestic 3G solutions and investing in the market of 3G connection. Thus, being equipped according to the recent updates, the Chinese telecommunication sphere can easily compete in the global market and benefit the country’s economy substantially (Lu et al., 2008). Further on, the investment in the telecommunications sphere related to the 3G technology development will provide the impact to the improvements started in all other areas including the mainline telephone connection, mobile connection, Internet opportunities, etc (Regan, 2005).
Finally, the focused governmental work on telecommunications development can provide international promotion opportunities for the Chinese mobile phone manufacturers and operators. As well, this work might attract more foreign investors who would like to launch their businesses in the Chinese market. Driven by these factors, the Chinese government plans to invest over 280 billion Yuan in the development and modernization of the 3G networks around the country (Lu et al., 2008).
Further on, the increase in social investment into the 3G development will be caused by the overall nationwide promotion of the strategic 3G importance for the country. As a result, it is expected that China will gain over 2 trillion Yuan in investment for its telecommunications sphere development (Lu et al., 2008). Through these steps, the Chinese Government achieves to goals at once. It succeeds in the updating of its telecommunications sphere and manages to establish partnership relations with foreign partners and investors that might be further used for other Chinese developmental initiatives (Winston and Edelbach, 2005).
Accordingly, the consumer demand for telecommunications good and services have increased considerably over the recent years. Seeing that their domestic products are of the same quality as the best international ones, the Chinese telecommunications customers choose to support their domestic 3G technology development and add to the powerful investments made in the country’s economy.
References
- Bijian, Z. (2005). China’s Peaceful Rise to Great-Power Status. HeinOnline, Foreign Affairs, 84 (18): 18 – 24.
- Chen, H. H. (2002). China’s perspectives on 3G mobile communications and beyond: TD-SCDMA technology. IEEE Wireless Communications, pp. 48 – 59.
- Lu, June, Chang Li, Chun Yu, James Yao. (2008). Exploring Factors Associated with Wireless Internet via Mobile Technology Acceptance in Mainland China. 101-120.
- Regan, K. (2005). Nokia: China soon to be biggest mobile market.
- Winston, M. E. & Edelbach, R. D. (2005). Society, Ethics, and Technology. Thomson, 3rd Edition.